Mubadala Completes Transfer of 31% Stake to Aris Mining in Columbia

Abu Dhabi sovereign wealth fund (SWF) Mubadala has completed the transfer of an additional 31% stake in the Soto Norte gold-copper project (PSN) in Colombia to gold exploration and production company Aris Mining, which has now become the controlling shareholder with a 51% stake in the project, while Mubadala retains a 49% stake.

In exchange for the increased stake, the US-based Aris Mining will issue a total of 21.75 million shares to Mubadala, valued at $90 million. This includes a 9.9% stake now, with an additional 6 million shares to be issued to Mubadala after Aris obtains an environmental license for the project, Aris Mining said.

It may be recalled that in March 2022, Aris Mining disclosed the results of mineral resource and reserve estimates and a Feasibility Study for the Soto Norte Gold Project in a NI 43-101 compliant Technical Report with an effective date of January 1, 2021.

The Feasibility Study includes a 7,200 tonnes per day capacity processing plant with average annual production of over 450,000 gold ounces (oz) over an 11-year production period at average all in sustaining costs (AISC) of $471/oz from a 5 million-ounce mineral reserve.

In 2023, Aris Mining completed a technical and economic assessment of PSN that considered a scaled-down mining concept. To confirm and optimise our assessments and streamline permitting processes, we have decided to undertake Feasibility Study level work on a new, smaller scale development plan with optimizations.

This includes reducing the environmental footprint, building a smaller processing plant with a longer operating life, adopting a flexible mining method to target higher-grade material earlier in the mine life, installing a paste backfill plant to minimise surface tailings storage requirements, and replacing the 6.9 km tunnel to connect the mine and the processing plant site with an aerial ropeway, a material movement approach utilised in Colombia and other jurisdictions.

Significant Mining District

The Soto Norte region in Colombia is a significant mining district, hosting numerous small-scale mining operations. Aris Mining’s partnership model, successfully implemented at its Segovia Operations, increases gold production while benefiting contract mining partners, the Government, and the environment.

The new development plan for PSN will integrate processing solutions for local contract mining partners. By supporting the formalization of traditional miners into contract mining partners, Aris Mining aims to enhance economic development and environmental protection.

Mubadala and Aris Mining inked an agreement in May this year to raise Aris Mining’s stake in the gold-copper project to 51%. Aris had originally acquired a 20% stake in Mubadala’s subsidiary Minesa, the company which fully owns PSN in March 2022, forming a JV which saw Aris become an operating partner in Minesa.